This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equity indices are mixed again this morning having lost some of yesterday’s bullish momentum although they remain close recent recovery highs. A pause is, however, to be expected as we creep ever closer to the UK’s referendum result on Friday, polls continuing to suggest it is too close to call. Markets also have a tendency to hunker down into any major risk event, preferring to avoid leaving excessive risk on the table, especially when the outcome could be so groundbreaking – politically, economically and of course for financial markets. Cautious tones about Brexit from both Fed Chair Yellen and ECB President Draghi yesterday may also have hammered home the wide-reaching scale of the UK decision and uncertainty it could produce. We all know how markets dislike an uncertain outlook. Just look how they have reacted to the latest polls.
The UK 100 has broken its uptrend from last Thursday and so could fall back to this week’s rising support at 6200. The DAX30 is holding an uptrend for the week with rising support at 10050. Wall Street/Dow Jones futures are sideways around 17850 into the apex of a narrowing pattern. A breakout could mean continuation of the prior uptrend. Gold declines have slowed up around $1265 after a trio of bearish patterns.
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The UK 100 has broken its uptrend from last Thursday and so could fall back to this week’s rising support at 6200 before resuming its strong uptrend from last week’s lows. Beware the RSI correcting from overbought.
Watch levels: Bullish 6245, Bearish 6220
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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The DAX30 has turned back from 10100 but is holding uptrends for this week and since last week via rising support at 10050. Beware the risk of a double-top back below 10000 should 10040 be breached.
Watch levels: Bullish 10080, Bearish 10035
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
Wall Street/Dow Jones futures are sideways around 17850 into the apex of a narrowing consolidation pattern, a breakout from which tends to result in continuation of the trend into; in this case up. Beware any breach of 17800 support.
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
Gold declines have slowed up around $1265 following a trio of bearish patterns (Head & Shoulders top; Descending triangle; bearish flag). Pause before another leg down on improved risk appetite, or rebound on safe haven demand?
Watch levels: Bullish $1270, Bearish $1265
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
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